Shocked staff and customers of two fish and chip shops are reeling after finding out their venues may close after the owner was jailed for fraud.

Staff at the Seaway restaurant and takeaway in Cleethorpes and St James' Fish Restaurant in Grimsby had not been told Sadit Sabir had been jailed for three-and-a-half years on Thursday and the shops were "likely" to close.

And neighbouring businesses of the Seaway fish restaurant on Alexandra Road in Cleethorpes said it would be a blow for the street if it was forced to shut.

The first thing staff knew of the devastating closure prospect was when Grimsby Live published the court report with the warning from Sabir's barrister that the business could fold.

The Seaway fish and chip restaurant and takeaway was closed at its usual opening time on Friday but opened later in the day (Image: Rick Byrne / Grimsbylive)

For Sabir, Khadim Al'Hassan told the court there was no one else apart from his client who could run the businesses.

He said the two fish and chip shops could close if he was jailed. After the hearing he told Grimsby Live it was "likely" they would close.

But staff arriving at work were shocked to read the news their boss had been jailed at Grimsby Crown Court for defrauding the taxman of £1.4million.

In his sentencing, Judge Paul Watson QC said: "Hard-working people who pay their taxes may resent having to do so. But they have no option."

He added: "It is said that by imposing a custodial sentence I could be putting people out of work or putting their livelihoods in jeopardy. It is not me that is putting these people out of work , it is you, by reason of your greed and dishonesty."

Owner of Seaway fish and chips in Cleethorpes and St James Fish restaurant in Grimsby Sadit Sabir, pictured, was jailed for three-and-a-half years for tax and VAT fraud (Image: Grimsby Live)

He said Sabir had tried to blame his accountant and his former wife who was company secretary, who he claimed did the book keeping.

The judge said it was "systematic dishonesty" over a long period of time.

Gary Harding of Tom's Bargain Centre on Alexandra Road, Cleethorpes said: "All the fish and chip shops are struggling. Since Papas opened people are heading down the seafront rather than up here. It is great what they have done for the Pier, but it is having a knock on effect along here."

He added: "If Seaway shuts it is a blow to the street. But I am confident someone will snap it up before the summer season. It won't stay closed for long, if it does."

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